LegalZoom.com, Inc. (LZ)
Technology
- Fundamental
- 3
- Sentiment
- 2
- Technical
- 2
Do Nothing: qualitativeScore is 2 (below required floor of 3); shadow admission is disabled, so the strategy cannot issue a bullish entry, and LZ remains in post-earnings repair below all key moving averages.
Company overview
LegalZoom.com, Inc. provides a digital platform offering legal and regulatory services across the United States. The company supports individuals and small businesses with services such as business formation, estate planning, intellectual property protection, and legal document preparation. Founded in 1999, LegalZoom is headquartered in Glendale, California.
Fundamental
fairLegalZoom shows subscription-led growth and strong cash flow, but GAAP margins are thin and cash flow is supported by non-cash items.
Mixed-but-improving setup: subscription-led growth continues and recent SEC filings show ample liquidity (net cash plus an undrawn $100M revolver). On current pricing the company screens inexpensive on EV/Sales (~1x) and EV/EBITDA (~10x) with strong free-cash-flow generation, but GAAP margins remain slim and cash flow quality is partly propped up by stock-based compensation and deferred-revenue dynamics. Key watch items are customer acquisition/channel shifts and regulatory exposure around legal services and privacy.
Sentiment
weakMedia coverage is slightly negative following earnings guidance cuts, with no significant retail or catalyst activity noted.
The near-term narrative is dominated by the Aug-05 earnings/guidance reset (announced), with media tone slightly negative (polarity_score≈-0.08) and modestly weaker than the prior 30–90d baseline (≈-0.02). A moderate red-flag cap applied due to conflicting signals (Microsoft 365 Copilot integration mention vs guidance cut), while the legal screen showed only plaintiff-law-firm solicitation notices with no regulator-confirmed probe.
Technical
weakThe stock is stabilizing post-earnings but remains below key averages with weak momentum indicators.
LZ is stabilizing after the 2026-08-06 earnings gap, and the 8/12-8/13 rebound carried more volume than the 8/14 fade, but the primary technical stack is still bearish: price 5.62 sits below daily VWAP 5.72, EMA9 6.12, EMA21 6.64, SMA20 7.01, SMA50 6.66, and SMA200 7.57. RSI14 36.53 is weak, Williams %R -88.58 is oversold, and MACD (-0.39 vs -0.11 signal) remains below zero, while ADX14 30.2 says the prevailing move still has trend strength. That leaves a bounce-only chart, not a confirmed short-term long.
You’re looking at 2026-08-15 — more than 2 trading days ago.
Subscribers saw this then, and see today’s score, verdict and trade plan now.
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Not financial advice. For informational and educational purposes only.